2. ABC held 25% of DEF Corp.'s common stock on January 1. Its book value at that time was $600,000. During the year DEF paid dividends of $100,000 and earned $500,000. ABC's interest in DEF gives ABC the ability to exercise significant influence over DEF's operating and financial policies. Before income taxes, what amount should ABC include in its year end income statement as a result of the investment?

a.$150,000

b.$100,000

c.$25,000

d.$125,000